Lehman Commercial Paper eyes settlement with Greenbrier Minerals

By Lisa Kerner

Charlotte, N.C., Feb. 3 - Lehman Commercial Paper Inc., Lehman Brothers Holdings Inc. and affiliated debtors asked the court to approve a settlement agreement with Greenbrier Minerals Holdings, LLC and certain of its affiliates, Midland Trail Resources, LLC and Dolphin Mining, LLC related to a May 1, 2007 amended and restated credit agreement, according to a Feb. 3 filing with the U.S. Bankruptcy Court for the Southern District of New York.

The current amount outstanding under the credit agreement is disputed by Lehman and Greenbrier.

Lehman believes the amount owing as of Jan. 25 is $211,322,098, comprised of $167 million in principal, $36,463,820 in accrued and unpaid interest at the regular contract rate and $7,858,278 of additional accrued and unpaid interest at the default rate.

Greenbrier has alleged that Lehman failed to satisfy a properly made draw request and, as a result, believes that certain of the amounts claimed by Lehman must be reduced, the filing said.

Under the settlement, Greenbrier has agreed to release its claims against Lehman, and Lehman has agreed to cap its claim for principal and interest under the credit agreement at $200 million.

A hearing is set for Feb. 16.

New York-based Lehman Brothers Holdings was the fourth-largest investment bank in the United States. The company filed for bankruptcy on Sept. 15, 2008. Its Chapter 11 case number is 08-13555.

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